Business

Treasury managers may find that hiring an outside investment firm to select and manage financial vehicles for extra cash can increase returns. Often, treasury managers do not have much time to spend investigating financial vehicles, so they choose highly liquid, short-term investments. An outside cash management firm can invest in safe financial instruments for a longer period of time, and can spend more time buying and selling these instruments. Risks involved in using an outside firm (such as not conforming with company guidelines) and the cost of the outside management may be partially mitigated by working closely with the independent investment firm and keeping them apprised of upcoming cash flow needs.

Tradition reigns in cash management, survey says

Article Abstract:

A survey by Trans Data Corp. of U.S. banks providing cash management services shows that corporations are more interested in traditional cash management techniques (such as controlled disbursements) than in the newer electronic techniques. While interest in controlled disbursements remained high, nearly 70 percent of the respondents said that Corporate Trade Payments (CIP) were not significant. Corporate interest in treasury management systems is slightly higher than its interest in CIP; nonetheless, more than 28 percent of the top 300 banks surveyed will continue to offer treasury workstations, and an additional 20 percent plan to do so by mid-1986.

Secure your job, boost cash flow by seeking acquisition partners

Article Abstract:

Merger of a middle market company with a large corporation can provide growth capital, stability, and increased ability to obtain loans. Middle market treasury managers can seek potential acquisition partners to ensure that a takeover will not leave them without their jobs; if treasury managers take part actively in the acquisition process, they may find that their careers will receive a considerable boost. More than 12,000 middle market firms could change hands in 1986, and there are as many as ten buyers for every seller on the market.